CNX-NIFTY
Closed at 8238.15 on 16-10-15.
Support:- 8195.65/8088.60/8065/8055/ 7997/7960/7940/ 7840/7759/ 7723.
Resistance:-8246.40/8269/8272.80/8282.70/8315.40/8321.75/8337.95/8359.75/8489.55/8504.95/8530.60/8561.35/8626.95/8654.75.
Finally it closed reasonably above
its most critical resistance point of 8195.65 today, so now as long as it holds
this level it will be OK for the up move and long trade can be initiated on the
decline but not below 8195.65 with a stop loss of close below 8088. Please note
that it will pick up momentum once it crosses 8285 mark and sustain and
thereafter moving up it would face stiff resistance in the range of 8392/8490/8562/8627/8655.
Since it has respected the neckline up-side breakout for last 10 days and
crossed its critical point of 8195.65 today, therefore it can be assumed that
nifty may achieve the Head & Shoulder pattern upside target which would be
in the range of 8500—8550 maximum (see my post for 28-9-2015) it may extend to
8650 level also, provided if it holds 8195.65 for next 3-4 days and then crosses
8285 level and sustain.
It is important to mention here that
break and close below 8195.65 and then 8131(it changes every day) will give
first sign of crack and finally break and close below 8088 and 8030 will end the
on-going move.
TRADING STRATEGY FOR-19-10-15
1. Long trade can be tried on the
decline but not below 8195.65 with a stop loss of close below 8088.
2. Long call can be tried near 8131.92 but
not below this with a stop loss of close below 8088.
3. Aggressive day trader can try
short call if it consistently starts trading below 8195.65 with a stop loss of
above 8250. It could be a risky trade.
Remark:-The short and
intermediate trend is looking up. Since it has closed above its critical point
of 8195.65 and if it holds this mark it could give moderate to good up move
from here, therefore it is suggested to adopt buy on dip strategy till it holds
8195.65 and then 8131 levels. Fresh long call below 8088 should be avoided.
Kindly note that make your cost your stop loss in favorable
trade and then trail it as the price move up/down to gain maximum profit and
avoid losses. Use support and resistance levels as entry, exit, target and
trailing stop loss points. DO
NOT TRADE WITHOUT STOP LOSS.
Disclaimer:-The view expressed
here are solely of the author and he is not at all responsible in any way for
the outcome of the trade you enter based on the above view.
Note:
Price stated here is of spot market.
Contact me for
strategic guidance to enter and exit the trade.
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Thank you for sharing your views.